Volcanogenic massive basemetal sulphide and gold mineralisation of predominantly low sulphidation style has been located within Lower Tertiary basaltic and felsic volcanic and sedimentary sequences at Ufuo, in the Left April River area, northwest Papua New Guinea. The four discrete massive sulphide bodies, which have been so far identified, occur within a 3 5 km area situated within a north west trending structural corridor. The sulphide bodies are all localised on the margins of the corridor where the bounding major through going faults are transected by regional faults. Mineralisation is characterised by massive pyrite-bornite-sphalerite-barite-quartz-anhydrite deposition with later galena-tennantite-chalcopyrite. Minor phases include enargite, goldfieldite and bismuth sulfosalts. Jasperoidal silica lenses and bioturbated sediments are closely associated with the massive sulphides. Basemetal sulphide mineralisation is also closely associated with phyllic-style quartz-sericite- altered host rocks underlying the massive sulphide lenses. This mineralised phyllic alteration is localised to fractures, veins and breccias that cross-cut propylitic style alteration characterised by quartz, epidote, chlorite, adularia and zeolite. The mineralised system possesses several hydrothermal features consistent with a copper-rich submarine exhalative volcanic hosted massive sulphide (VHMS) system, ie discrete massive sulphide bodies with abundant barite, associated jasperoidal silica and bioturbated sediments. However, exploratory drilling of the alteration zone underlying each of the massive sulphide bodies has not identified a well-defined zoned alteration pipe that is characteristic of such systems. The alteration is also similar to that of a porphyry-related low sulphidation system in which phyllic alteration has overprinted a regional propylitic style assemblage. The presence of sporadic enargite (and ?tennantite/tetrahedrite) suggest there were intermittent pulses of acid fluids in the system probably derived from exsolved magmatic SO2 which flowed directly to the surface along reactivated faults. The occurrence of tellurium and bismuth minerals is also consistent with a magmatic contribution to the metalliferous hydrothermal fluids. It is proposed that the VHMS orebodies are the products of submarine exhalative deposition generated by a crystallising magma emplaced within crust of on-going tectonism. Ufuo mineralisation is similar to many VHMS deposits elsewhere in that it is unclear whether the metals are derived from the magma directly, or via seawater leaching of the wallrock. Additional studies such as oxygen isotope analysis may assist in resolving this issue. If the metals are shown to be of direct magmatic origin then there may be good prospects for discovering economic-grade porphyry-related mineralisation at depth below the massive sulphide deposits.